OEM

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OEM

OEM

(Original Equipment Manufacturer) The rebranding of equipment and selling it. The term initially referred to the company that made the products (the "original" manufacturer), but eventually became widely used to refer to the organization that buys the products and resells them. However, the reseller is often the designer of the equipment, which is made to order. Many of the largest PC vendors are OEMs, including HP, Dell and Lenovo. Essentially, any PC company that does not have its own manufacturing facilities is an OEM.

Added Value or None
The OEM often does not add anything to the equipment and merely brands it with its own logo. The OEM's name is either placed on the devices by the contract manufacturer that makes the equipment or by the OEM itself. However, OEMs may indeed add value. For example, a "value added reseller" will purchase a computer, add its own software and/or hardware and sell it as a turnkey system. See VAR and turnkey system.

There are numerous companies that specialize in OEM manufacturing and never sell anything under their own brand (see contract manufacturer). Many companies do both. They manufacture and sell retail, but also have a separate OEM division for goods that are private labeled.
References in periodicals archive ?
Scheduled to run from 29-31 October next year, PRIME will be the MENA region's exclusive exhibition for food and non-food FMCG product mix expansion and brand placement, connecting private label suppliers and contract manufacturers from across the globe with clients from the Arab world.
When considering which retail channels have the most potential for private label growth, almost half of vendor respondents named online.
Retailers can appeal to this demographic with differentiated, engaging and high-quality private label products, as millennials are known to be less loyal to traditional brands and more willing to try emerging brands compared to other consumer demographics.
* E-commerce private label is growing quickly, supported by the proliferation of click-and-collect models.
The Phoenix-headquartered retailer shared recently that one in every 10 sales was a private label product last year.
Recent market research supports the notion that there's work to be done on some private label and store-brand identities to reach that second objective of establishing exclusivity.
The key players in the Private Label Foods & Beverages in the US are Costco Wholesale, Kroger, Safeway, Trader Joe's and Wegmans while other prominent vendors include A&P, Ahold USA, ALDI, CVS Pharmacy, Delhaize Group, Dollar General, Family Dollar, Giant Eagle, H-E-B, Hy-Vee, Loblaw Companies, Meijer, Metro, Publix, Rite Aid Pharmacy, Shoppers Drug Mart, Sobeys, SuperValu, Target, Wakefern, Walgreens, Walmart, Whole Foods and Winn Dixie
"Manufacturers need to continue to shift consumer attitude towards a positive image of private label by offering good-value-for-money products that people can trust." For example, many private labels are offering inexpensive alternatives with a packaging design similar to that of a well-known brand in order to instill brand confidence in consumers and simplify the product choice by providing an obvious comparison.
"In most cases, private label products in the UAE are the cheapest in the category and that's where the loyalty has stemmed," he said.
"Private label can be difficult," observes Molly Broder, owner of Broders' Cucina Italiana in Minneapolis.

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